The hybridity of the South African market allows entrepreneurs to test products for both the mature and developing markets, according to Anthony Stonefield, managing director (MD) for Africa at Gramercy Venture Advisors.
Stonefield sat on a panel to discuss the investment landscape in Africa at the U-Start Conference in Milan last month.
“South Africa has this unique dual kind of role and it is probably the safest jump point into Africa,” he said.
He said there are lots of opportunities to build a business on African growth and then look at internationalisation from there.
However, he said making investments should not be limited to local companies, but to those focusing on Africa itself.
“It’s not all about sourcing from South Africa, I am all for ventures looking to solve African problems. So the importation and joint venturing on the ground on the ground in Africa is a very important thing,” he said.
Cape Town tech incubator the Bandwidth Barn’s Vusi Qabaka shared Stonefield’s sentiment.
“We are developing global solutions, and solving not only our own regional challenges but also challenges that are faced by many emerging markets around the world,” he said.
However, James Durand of the United Kingdom’s Mamba Mentors warned companies interested in making use of the advantageous entrepreneurial environment should not only focus on South Africa as a launching point into emerging markets but should make sure they are doing business within the region.
“We should be building more tech for businesses’ not in Europe, but actually in Africa and I think that is often overlooked,” he said.
HumanIPO reported last month over 20 per cent of all foreign direct investment (FDI) on the continent is centred on technology, media and telecommunications projects.
According to Ernst & Young’s Africa Attractiveness Survey 2014 this is due to a shift in investment from extractive to consumer facing-sectors.
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